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The difference between the original price and the selling price of a product defines the loss or the profit that has been made on that product. If the difference is positive, then the seller makes a profit. But if the difference is negative, then, the seller makes a loss on the product being sold. In this article, we will learn about the formulas related to profit and loss....Read MoreRead Less

Profit is defined as the resultant difference in the amount when a product is sold for a price more than the original price. In simple words, if the original price is less than the selling price then the seller makes a profit on that product.

Loss is defined as the difference in amount that is obtained when the seller sells a product for a price lesser than the original price. In simple words, if the original price is greater than the selling price then the seller has made a loss on that product.

The original price of a product is the actual **asking** price for a product by a seller from the customer.

The selling price of a product is the amount received from the customer, either more than the original price, or, less than the original price, by the seller for a product.

- Profit = Selling Price – Original Price

- Loss = Original Price – Selling Price

- Profit Percentage = \(\frac{Selling~Price~-~Original~Price}{Original~Price}\) x 100%

- Loss Percentage = \(\frac{Original~Price~-~Selling~Price}{Original~Price}\) x 100%

**Example 1: **The price of a water bottle is $15 and the seller sells it at $17. What is the profit gained by selling the water bottle?

**Solution:**

The original price of the bottle is $15 and selling price is $17.

The profit can be calculated by using the profit formula.

Profit = Selling Price – Original Price [Profit formula]

= $17 – $15

= $2

Hence, the profit gained by selling the water bottle is $2.

**Example 2: **John sold his bike for $3650 and that too at a loss of $350. What is the original price of the bike?

**Solution:**

The selling price of the bike is $3650 and the loss is $350.

The original price of the bike can be calculated using the loss formula.

Loss = Original Price – Selling Price [Loss formula]

$350 = Original Price – $3650 [Substitute the values]

Original Price = $350 + $3650 = $4000

Therefore, the original price of the bike is $4000.

**Example 3: **Find out the loss percentage when a product is sold out at $2250 and its original price is $2400.

**Solution:**

The selling price of the product is $2250 and its original price is $2400. The loss percentage can be calculated by using the formula for loss percentage.

Loss Percentage = \(\frac{Original~Price~-~Selling~Price}{Original~Price}\) x 100% [Loss percentage formula]

= \(\frac{2400~-~2250}{2400}\) x 100% [Substitute the values]

= \(\frac{150}{24}\) % [Simplify]

Hence, the loss percentage is 6.25%.

**Example 4:** John went to buy a shirt with an original price of $500. While selling the shirt the shop keeper made a profit of 8%. What is the selling price of the shirt?

**Solution:**

The original price of the shirt was $500 and the shopkeeper made a profit of 8%. The selling price can be calculated by using the formula for profit percentage.

Profit Percentage = \(\frac{Selling~Price~-~Original~Price}{Original~Price}\) x 100% [Profit percentage formula]

8% = \(\frac{Selling~Price~-~500}{500}\) x 100% [Substitute]

8 = \(\frac{Selling~Price~-~500}{5}\) [Simplify]

8 x 5 = Selling Price – 500 [Cross multiply by 5]

Selling Price = 40 + 500 = 540

So, the selling price of the shirt is $540.

Frequently Asked Questions

Loss is defined as the difference of amount obtained when the seller sells a product for a price less than the original price.

The profit is defined as the difference of amount obtained when the seller sells a product for a price more than the original price.

The selling price of a product is the amount received by the seller from the customer for a product.

The original price of a product is the amount asked by the seller for a product, from the customer.